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The watermarking algorithm in discrete multiwavelet transform (DMWT) domain has received much attention recently because multiwavelet can possess many nice properties simultaneously, which can contribute to the improvement of watermarking performance. But because of the complexity of color image watermarking, there are few DMWT algorithms about dual color images watermarking (DCIW), which hides the color watermark image into the color host image. Based on the fine properties of symmetric balanced multiwavelet, we propose a novel DMWT algorithm of DCIW in this paper. The technique greatly improves the watermarking efficiency, because its realization only requires taking DMWT or inverse DMWT (IDMWT) to the R, G, B elements of the color host image and watermarked image respectively. Moreover, the experimental results show that the watermarking system has good transparency and robustness.